Article 3

If the total quantities covered by the contracts submitted to the intervention agency exceed the quantities laid down in Article 1, Hungary shall determine the rates of reduction to be applied to those contracts.

Hungary shall take the administrative steps necessary to approve the contracts not later than 23 December 2005. The approval shall specify any rate of reduction applied and the quantity of wine accepted per contract and shall stipulate that the producer may cancel the contract where a reduction rate is applied.

Hungary shall notify the Commission before 6 January 2006 of the quantities of wine covered by approved contracts.

Hungary may limit the number of contracts that individual producers may conclude under this Regulation.